ANALYSIS car manuf?cturing c?mpanies in the w?rld. Mercedes-Benz did

 

 

ANALYSIS OF THE SUPPLIERS FOR MERCEDES BENZ COMPANY

 

 

 

Analysis of organization and its suppliers and particularly the supplier of urgent transportation services in car-manufacturing industry

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COURCE: SUPPLIER RELATIONSHIP MANAGEMENT

 

 

 

 

SUPERVISOR NAME: JOLANTA KUBICKA

 

PREPARED BY: ISA ISKANDAROV

FARID BALOGHLANOV

TABLE OF CONTENTS

Introduction……………………………………………………………………………………..3

Chapter 1

1. Suppliers of Mercedes Benz Company………..……………………………………………..4

1.1       Alpine Electronics……………………………………………………………………….4

1.2       Dräxlmaier Group…………………………………………………………………..……5

1.3       Brose Fahrzeugteile……………………………………………………………………..5

1.4       Valeo company …………………………………………………………………………5

Chapter 2: Strategy in Supplier Relationship Management……………………………………..6

2.1       Supplier Segmentation…………………………………………………………………..6

2.2       Supplier Identification ……………………………..…………………………………….7

2.3       Criteria of choice of suppliers…………………………………………………………….8

Conclusion……………………………………………………………………………………….8

References…………………………………………………………………………………….….9

 

 

 

Introduction

In this project, we will explain strategy in supplier relationship management, supplier segmentation, supplier identification and criteria of choice of suppliers of Mercedes Benz Company. In addition, we will give examples of Company’s main suppliers and analyze some of them according to the supplier segmentation 

Information about Mercedes Benz Company

Merced?s Benz C?mpany is one of the bigg?st car manuf?cturing c?mpanies in the w?rld. Mercedes-Benz did not gr?w over night. It took m?re th?n 4 decad?s before the autom?bile was p?tented, marketed, distribut?d and s?ld. Karl Benz patented a ped?l free mot?r w?gon in G?rmany in 1886. First aut?mobile was introduced t? th? m?rket in 1901. From 1926, Mercedes Benz autom?biles were ?vailable for public. Since then, C?mpany has bec?me a br?nd kn?wn w?rldwide for qu?lity perf?rmance, d?sign and techn?logically innov?tive luxury v?hicles. M?rcedes Benz began operati?n thr?ugh its p?rent c?mpany, D?imler Group Corporation of Stuttgart Germany. In 1930th, Comp?ny produced the 770 m?del, which was p?pular during German’s Nazi period. After g?ining p?pularity in Eur?pe C?mpany lead?rs d?cided to expand market, th?n in 1965, M?rcedes Benz USA (MBUSA) w?s created. Now?days Mercedes Benz produce th?ir ?utomobiles in thirty c?untries. Produ?ts of C?mpany can be f?und ?ll over the world.   M?rcedes B?nz offers a full r?nge of passenger, light ?ommercial and h?avy c?mmercial equipm?nt: c?rs, vans, trucks, buses.    The m?in products ?re luxury c?rs: S-Class, Mercedes-Maybach and M?rcedes-AMG.

 

Chapter 1. Suppliers of Mercedes Benz Company

Mercedes Benz Company has more than 100 suppliers. We list some of them:

A H R Metals Inc., Alpine Electronics, A1 Bar Code Systems, AGC Automotive Americas, Ai3/DJD Investments Sequencing Center, Automotive Lighting Company, Alabama Bolt & Supply, Alabama Graphics & Engineering Supply, All Pro Inc., Allright Tool Company Inc, Altex Packaging Inc, Aluminum Technology Schmid North America, AmPro Molding LLC, Andress Engineering Associates Inc, Applied Industrial Technologies, ARD Logistics-Alabama LLC, Atchley Steel Company Inc,  Brose Fahrzeugteile, Bagby Elevator Company Inc, Bar Bender Steel Inc, Barloworld Handling LP, Bates Enterprises, Dräxlmaier Group, Benteler Automotive Corporation, BHS-HARREX Inc, Birmingham Control Systems, Davis Machine Works, Davison Oil Company Inc, Decatur Plastics Products Inc, DSW Converting Knives Inc, Dudley C Jackson Inc, Eberspaecher North America, Eissman Automotive North America Inc, Fravert – Business Image Graphics, G & B Global LLC, Federal-Mogul Corporation, Gestamp Alabama, Giant Resource Recovery-Attalla Inc, Global Industrial Components Inc, Great Lakes Metal Stamping Inc, Grede Escambia, MGM Machining Inc, Mid-South Industries Inc (HQ), MISA Metal Blanking Inc, Mitchell Plastics, Motion Industries Inc, MSCO Inc Colbert, Neocon USA Inc, New Southern Resistance Welding, Oerlikon Balzers Coating USA Inc, OMI (Opelika MetalFab Inc), Packaging Materials Supply, Hoerbiger Automotive Comfort Systems Inc.

1.1 Alpine Electronics

?lpine ?lectronics is the ?onsumer electroni?s subsidi?ry ?f th? J?panese ?lectronics c?mponent manufactur?r Alps El?ctric, sp?cializing in car ?udio and navig?ti?n syst?ms. Al?ine’s ?ngineering headqu?rters are in Iw?ki, Fukushim? Pref?cture, J?pan. Alpin? ?lso has m?nufacturing f?cilities in Br?zil, Hung?ry, M?xico, Chin?, and Th?iland.

 In 2006, 76% of Alpine’s rev?nues c?me fr?m OEM sal?s. BMW and H?nda h?ve ?ffered unbr?nded ?udio syst?ms m?nufactured by ?lpine, and c?mpanies su?h as Dodge and J?guar C?rs h?ve offered co-br?nded Alpine ?udio syst?ms in th?ir v?hicles. Est?blished in 1967 as Alps-Motor?la — a j?int v?nture b?tween Alps El?ctric and U.S.-b?sed Motorola — it bec?me Alpine Electroni?s, Inc. in 1978 wh?n Alps b?ught out Motorola’s sh?re ?f the c?mpany. Alpin? ?ffers a wide r?nge of items, including in-c?r multimedi?, ?mplifiers, spe?kers, subwoofers and sign?l proc?ssing equipm?nt. In 2008, Alpin? introduc?d a full lin? of m?rine sound system products.

1.2 Dräxlmaier Group

Dräxlmaier Group is a G?rman ?utomotive c?mponent supplier active in v?hicle electric syst?ms, electrical and electronic p?rts, int?riors, st?rage systems, pl?stics, tool m?king and l?gistics. F?unded in 1958, the f?mily run enterprise is nowadays ?ne of the top100 ?utomotive suppliers, running 58 sit?s in 22 c?untries on f?ur c?ntinents and is the m?rket leader in the premium segment for b?th wiring systems and interi?r syst?m. The H?adquarters of the Dräxlm?ier Gr?up is based in Vilsbiburg, Lower Bavaria, Germany. The Dräxlmaier Group has such r?nowned cust?mers as Audi, BMW, Bugatti, Cadillac, Jaguar, Land Rover, Lamborghini, Maserati, Mercedes-Benz, MINI, Porsche, Tesla Motors, and Volkswagen.

1.3 Brose Fahrzeugteile

Brose Fahrzeugteile is an autom?tive suppli?r. The f?mily-?wned c?mpany has its headquarters in Cobourg, Germany. In 2016, the Brose Group dev?loped and pr?duced m?chatronic compon?nts and syst?ms for vehicle do?rs, seats and body at 60 locations in 23 countries w?rldwide. Brose’s cust?mers includ? mor? than 80 car manufactur?rs and oth?r aut?motive suppliers. More than 25,000 employ?es worldwide working for the f?mily-?wned c?mpany. The Brose Group generated sales of € 6.1 billi?n in fisc?l 2016. The c?mpany is also the primary spons?r of the Brose Bamberg Basketball.

1.4 Valeo company

Valeo is an automotive suppli?r and p?rtner to autom?kers w?rldwide. As a technology company, they design inn?vative s?lutions for sm?rt m?bility, with a particular f?cus on intuitiv? driving and r?ducing CO? emissi?ns. The Group also provid?s and distribut?s spare p?rts f?r automak?rs and ind?pendent afterm?rket ?perators. Vale? Company produce r?diators for Mercedes Benz automobiles. As a global autom?tive suppli?r, Valeo operates in 32 countri?s to d?sign inn?vative technologies and syst?ms that will m?ke the c?r of t?morrow more intuitive, autonom?us, c?nnected and envir?nmentally fri?ndly.

 

Chapter 2. Strategy in Supplier Relationship Management

Strategy of Mercedes Benz Company in Supplier Relationship Management is creating closer, more collaborative relationship with key suppliers in order to uncover and realize new value and r?duce risk of failur?. Str?tegy is the selective p?rtnership.

“In the best year of our c?mpany’s hist?ry to d?te, we also initiated the biggest change. We are in the process of reinv?nting our entire c?mpany.” (Dieter Zetsche Chairman of the Board of Managem?nt of Daimler AG and Head of Mercedes-Benz Cars).

The m?in g?al of Mercedes Benz Company is to be the b?st, the sl?gan of c?mpany “The best or nothing”. They try to be succ?ssful in field of high t?chnology, s?fety, c?mfort and ?cology s?fety. For ?chieving th?se g?als, they ne?d k?y suppli?rs, which will provide sust?inability.

C?mpany h?nor their best suppliers every ye?r for their ?utstanding p?rformances in the past business ye?r with the D?imler Supplier Award. All k?y suppli?rs ?nd str?tegic partn?rs are invited to this cerem?ny. For t?p p?rformance in the c?tegories of Qu?lity, P?rtnership ?nd Inn?vation. In ?dditi?n, a Sp?cial Aw?rd is h?nded ?ver exc?ptionally inn?vative perform?nce.

2.1 Supplier Segmentation

The Merced?s B?nz Suppli?r N?twork philos?phy has b?en pr?viding the basis for the collab?ration betw?en Mercedes Benz C?mpany and the suppli?rs.

Perform?nce and p?rtnership are the basis of su?cessful c?llaboration. P?rformance me?sured b?sed on the ?riteria of qu?lity, t?chnology, c?sts and supply. P?rtnership b?sed on trust and open c?mmunication.

Mercedes Benz C?mpany c?tegorizes their supply b?se in four s?gments: Str?tegic P?rtners, K?y Suppli?rs, Suppli?rs and P?tential Suppli?rs.

 

 

 

 

Cl?ssification of suppli?rs b?sed on three criterias: Inn?vation, Performance and Purchasing Volume. 

The high?r a suppli?r ranks on the pyr?mid, the m?re ?pportunities ?nd trust the suppli?r is met with. The go?l of all p?rtners of Merc?des Benz C?mpany sh?uld be to m?ve to the t?p of pyr?mid: fr?m suppli?rs to key suppli?rs, from key suppli?rs to strategi? partn?rs. Ther?fore as high?r the segment as higher mutual ?xpectations and commitm?nts.

In this part we also will ?nalyze our four ch?sen suppli?rs ?ccording supplier segmentation methods.

Our four suppliers are not only Mercedes Benz Company’s strategic suppliers, but also for the other car manufactures. Therefore, we can divide all of them into strategic partners group, because of their properties: Strong brand, Exclusivity, High market control and High profitability.

According to nine supplier interaction models, we think that, as our supplier has the high level of performance in the market and they are strategic partners for Mercedes Benz Company they should be on Integrate position.

Based on Customer- Supplier matrix we can say that our suppliers should defined as Leverage. They have all requirements for this group: Low risk, high spend services, Customer approach: ” Play the market”. Customer-Supplier relationship is Tactical, Cost leadership and supplier approach: increase the fo?tprint.

2.2 Supplier Identification

Today the average company spends about half of their revenue to purchase goods and services. This makes company’s success dependent on their interactions with suppliers. The role of procurement managers has become very important. It is important not only develop existing suppliers but also find new suppliers.

Several factors make new suppliers important. F?r ?xample, a n?w suppli?r has mor? mod?rnized pr?duction syst?m and th?ir products ch?aper than ?xist suppli?r’s products. S?cond, exist suppli?rs m?y go out of busin?ss. The m?in p?int is that n?w suppliers can be more beneficial than ?xist supplier.

T? ?void any problems ?ccording to the supplier non-performance, buyers take proactive steps to verify s supplier’s qualific?tions. For checking supplier qualification buyers ask them about some verifications: reference ch?cks, fin?ncial st?tus ch?cks, surg? c?pacity ?vailability, indic?tion of supplier qu?lity, ?bility to meet sp?cifications. Suppli?rs who have p?ssed the qu?lification r?quirements and are ?ligible for c?ntract ?ward are c?mmonly r?ferred to as “pr?-qualified” suppli?rs.

2.3 Criteria of choice of suppliers

Mercedes Benz Company choose their suppliers not only based on stability and quality of production. Suppliers’ sustainability standards should define their requirements for working conditions, human rights, environmental protection and safety, and business ethics and compliance. They are obligatory components of the contract conditions. This components form the basis of all their business relations with manufacturing suppliers and service providers worldwide. By signing the contract supplier, commit to observing company’s sustainability standards. Company also support their suppliers to achieve these requirements, by providing information and training measures. The Daimler Supplier Portal serves as the central information platform.

 

Conclusion

As the inventor of the automobile, Company believe it is their mission and duty to shape future mobility in a safe and sustainable manner, with outstanding products and services and trend-setting technologies. Mercedes Benz Company’s goals are to be the leader in technology and innovation, to inspire customer and to continue to grow profitably. Company plan to achieve their goals by focusing on four strategic areas: Technology leadership and innovation, Delighted customers, Best teams, Profitable growth. For achieving these goals Mercedes Benz Company need beneficially and strong supplier relationship. Company built these relationships based on opportunities and trust.

 

References

1)      https://www.mercedes-benz.com/en/ official website of Mercedes company

2)      http://www.alpine.com/e/corporate/museum/78.html official website of Alpine company

3)      https://www.draexlmaier.com/ official website of Dräxlmaier Group

4)      https://www.brose.com/de-en/ official website Brose Fahrzeugteile company

5)      https://www.valeo.com/en/valeo-around-the-world/ official website of Valeo company

6)      Appelfeller, W. & Buchholz, W. (2005). Supplier Relationship Management. Strategie, Organisation and IT des modernenBeschaffungs managements, 12(2); 156-170

7)      Johnston, D. A., McCutcheon, D. M., Stuart, F. I., &Kerwood, H. (2004). Effects of supplier trust on performance of cooperative supplier relationships. Journal of Operations Management, 22, 23-38.

8)      Lambert, D.M., Emmelhainz, M.A., and Gardner, J.T. (1996), .Developing and Implementing Supply Chain Partnerships., The International Journal of Logistics Management, 7(2), 1-17.

9)      Mettler, T., &Rohner, P. (2009). Supplier relationship management: a case study in the context of health care. Journal of theoretical and applied electronic commerce research, 4(3), 58-71.

 

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